Question

6. Estimate the amount of shortage of cake slices the bakery will have if they price them at $2.00 each and type the equation you used. * Your answer

Answer 1

There are two different lines for quantity supplied, and quantity demanded. They are inverse in inclination

At a price of $5 supply and demmand are the same.

So we need to find how many slices of cake canbe sold at $2

Trace the supply demmand curve ,that is represented by

Q supplied + Q demanded = $ 5

At a price of $2 ,then shortage in price would be 8-2 =]$6

and with $6 can be buyed 6/2 =3 slices.

So then final answer is a shortage of 3 slices.